Claire COP 2022

UN GLOBAL COMPACT 2022 COMMUNICATION ON PROGRESS

I have worked with social responsibility throughout my professional career, day and night for 48 years.

My latest darling is solar energy to supply our domicile with green electricity. With three certifications, a very dedicated staff and most recently our new environmental effort, I am very proud to have been the commander in chief of this wonderful company.

Anders Hust

“

Our focus on quality stretches beyond our products. It also reflects the responsibility we have towards people and planet.

Nikolaj Hust

We build our business on relations and decency. We are innovative in our ambition to obtain results. We treasure sustainable initiatives.

STATEMENT OF SUPPORT

Claire Group A/S is an international fashion house with roots in Denmark founded in 1975 with the mission to create stylish and casual clothes that appeal to fashion conscious women and children. It is our vision to make clothes in a sustainable way and build a company we can be proud of.

This Environmental, Social & Governance Report (ESG) gives information and data on our CSR activities. We are dedicated to fulfilling the intentions of the 10 principles outlined in the UN Global Compact lnitiative and to be inspired by the 19 Sustainable Development Goals. We strive to influence our suppliers and business partners to support, to live up to and to participate in the Global Compact lnitiative. Claire Group A/S has been an active part of this initiative since January 2010. Our support is unchanged.

We built our business on relations and decency, and we believe that businesses must be sound and sustainable for all involved in the process. Since 2009, Claire Group A/S has been a member of Amfori BSCI (Business Social Compliance lnitiative) because we see supplier auditing as a necessary tool to maintain a responsible supply chain. But we have also taken our own medicine.

Since 2012, we have been the only fashion house in Scandinavia to be certified with the ethic management standard, SA 8000. In 2019 we became certified with Global Organic Textile Standard, GOTS, because we are convinced that sustainable fashion will prevail. In 2020 we added an FSC certification to be able to provide FSC

certified viscose produets, for example viscose of bamboo/ wool to our customers.

We have also committed ourselves to uphold a streng animal welfare programme, to minimize our carbon footprint and to comply with an anti-corruption codex and a chemical testing programme.

The year 2022 has been a year with great optimism since many things went our way. With three management systems in function, we are forced to deal professionally with our mistakes to avoid repetitions. Certifications comes with hard work. However, it is spot on in our strategy to focus on quality and a keyword in everything we do.

We measure our performance every year and we continue setting targets within the framework of the 10 principles in UN Global Compact. We are proud to contribute to a more sustainable fashion industry today and in the future.

Ikast, June 2023

ABOUT CLAIRE GROUP A/S

Claire Group A/S is an international fashion house. It is a family-owned company (Ltd.) established in 1975, with headquarters in Ikast, Denmark.

Together our collections make a complete concept for modern women and children with an active lifestyle. Our products are produced by our suppliers in Europe, China, and India.

COMPANY INFO

COMPANY: Claire Group A/S

DATE: 28-06-2023

ADDRESS: Marsvej 6 - 10 / 7430 Ikast

COUNTRY: DK - Denmark

SECTOR: Textile

MEMBERSHIP DATE: 11-01-2010

TELEPHONE: +45 97153122

EMPLOYEES: 45

GENDER: F: 38 M: 7

CONTACT NAME: Ulla Dam

CONTACT POSITION: Group CSR & Purchase Manager

CONTACT MAIL: ud@claire.dk

CLAIRE GROUP A/S CSR PROGRAMME FN´S GLOBAL COMPACT

CSR PROGRAMME

ENVIRONMENTAL WORK

Transportation policy

Environmental management

Chemical programme

Oeko-Tex 100 styles

Viscose - Bamboo styles

GOTS certification

FSC certification

ETHICS WORK

Social responsibility

SA 8000 certification

BSCI / Amfori membership

Supplier training

Animal welfare

Anti-corruption codex

OUR UN SUSTAINABLE DEVELOPEMENT GOALS (SDGS)

“

Our sustainability strategy is based on certifications because CSR is only relevant to me if we can walk the talk and translate fine words into everyday efforts.

Ulla Dam, Group CSR & Purchase Manager

GLOBAL GOALS - EVERYDAY EFFORTS

We believe that every country, organisation, and private company must contribute to achieve the sustainable development goals (SDG) and the Paris Agreement. The challenge is to generate global goals into local business supporting our business development.

We manufacture products and we are inspired from the SDG goals and take part in a worldwide effort to reach the goals. Our products do not contribute to fulfilment of the Global Goals, but we have learned that we can produce clothes with respect for people and planet and still be profitable. By complying with human rights and labour laws and with a strong focus on our carbon footprint, we trust we contribute to fulfilment of several of the SDG-goals.

We have chosen to focus on four of the Goals that relate most to our business. For Claire Group A/S SDG 5, SDG 8, SDG 12, and SDG 13 are at the heart of our CSR efforts.

The Goals create values through our activities. We seek transparency by mapping, measuring, and setting new goals. It started in 2007 with our suppliers, today we have taken steps to unfold our carbon emission.

Examples of our everyday efforts and how we contribute to achieving the SDGs, is outlined on the following pages.

2022

WHAT WE DID

Increased ownership to the Sustainable Development Goals in Claire Group with references in communication and internal training.

2023

WHAT WE WANT Efforts on increased visuality on our four SDG goals.

THE 17 SUSTAINABLE DEVELOPEMENT GOALS

OUR FOUR GOALS

WHAT WE DO

SGD 5. Gender equality

Maintain gender equality.

Gender equality in our organisation is important because gender equality is not only a fundamental human right, but also a necessary foundation for a homogeneous and prosperous organisation. In our warehouse women as well as men should be able to handle all work. Our femal managers provide professionel and sustainable views to all kind of challenges and gender equality is implemented at all levels in our organisation. Gender equality is a part of our general focus on anti-discrimination and diversity. We aim to maintain a balanced level between men and women on manegement level.

SGD 8. Decent work & economic growth

Decent work for all employees.

We believe the most efficient way to contribute to a sustainable economic growth for our organisation and everybody involved in the manufacturing of our clothes is by providing all workers with decent work with a fair salary. In 2009, we became member of Amfori-BSCI – a European audit-based initiative for handling suppliers. We have contributed to putting an end to workers lack of income and ensured a sustainable livelihood, by prioritizing suppliers with satisfactory audit results. In this way, we have influenced our suppliers always to pay legal wages and step by step be bound to implement living wages.

SGD 12. Responsible consumption and production

Ensure sustainable production patterns.

We see responsible consumption and production as an obligation to promote sustainable production of garment, access to decent jobs, basic goods, and a better quality of life for all. Implementation helps to achieve overall development goals, reduce future footprint from production, strengthen economic competitiveness and reduce poverty. We prioritize significant on operating our supply chain, involving everyone from producer to final consumer. This includes educating consumers on sustainable consumption and lifestyle, providing them with adequate information about our standards and our garment with certifications.

SGD 13. Climate change

Urgent

action to combat climate change.

We take pride in taking urgent action to combat climate change and its impacts in Denmark and cascade our position to our supply chain and business partners worldwide. We address all opportunities to minimize our impact from manufacturing garment in Far East with distribution in Europe. We endeavour to address challenges regarding air, water, waste, and pollution in general. We have begun to implement Scope 1, Scope 2, and Scope 3 issues and use standard calculation to be able to compare our figures. We are certified with GOTS and FSC to provide environmentally friendly garments.

EXAMPLES OF OUR IMPACT ON THE SDGS

SGD 5. Gender equality

Achieve gender equality.

A balanced representation of men and women at management levels in the organisation taking part in decision making.

Women as well as men can work at all levels in our organisation.

SGD 8. Decent work & economic growth

Decent work for all employees.

Jobs with fair remuneration according to Amfori-BSCI, Code of Conduct, due to factory audits in the supply chain. Aiming for living wage.

We provide safe jobs due to our focus on Occupational Health and Safety in house and at our suppliers’ facilities. OHS work is a high priority topic to us including the psychological work environment.

SGD 12. Responsible consumption and production

Ensure sustainable production patterns.

A responsible supply chain is our main priority since 2007. It is a goal that our clothes must be produced at factories with audit results A, B, C according to the Amfori-BSCI system.

Our responsible chemical programme is intended to secure good health to workers in contact with our clothes and to provide our customers with clothes complying with the set limit values for restricted substances.

SGD 13. Climate change

Urgent action to combat climate change.

We will promote our certifications with GOTS and FSC further and continue to extend the number of styles in our collection with GOTS label, FSC label, and OEKO-TEX 100.

Handling and measuring our carbon footprint in Scope 1, Scope 2, and selected areas of Scope 3.

Responsible management of waste and resources at our premises in Ikast with a strong focus on reusing cardboard boxes.

We are in the progress of implementing solar energy at our headquarters

Reducing carbon footprint from transportation by ship/air begins with measuring and setting goals. Due to extremely well-organized production planning in the Design and PU-department and a particularly good cooperation with our suppliers, we have reduced our transportation by air.

GLOBAL COMPACT GOALS

HUMAN RIGHTSPEOPLE

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights.

Principle 2: Make sure that they are not complicit in human right abuses.

COMMITMENT

We are committed not to violate basic human rights conventions in Denmark and wherever our clothes are produced. We support the international declared human rights, and we will not discriminate against any person on grounds of race, religion, gender, age, or disability. It is one of our core values that we are aware of our social responsibility towards employees, local society, and workers in our supply chain.

Everybody should be given fair opportunities to build careers. We are committed to have a sustainable supply chain and through our membership of Amfori-BSCI, we are obliged to respect the fundamental human rights conventions no matter where our production is situated.

ACTIVITIES

We have a clear written policy on sustainability incl. responsible production. Our values together with our in-house SA 8000 procedures and our Amfori-BSCI membership ensure us against discrimination. To prevent discrimination to happen we have implemented proactive procedures for hiring, promoting and dismissal. Our headquarters in Denmark are under strict Danish legislation, and we comply.

We have established a whistle-blower system to handle complaints and we have in-house awareness training in human rights and SA 8000 issues. We have an annual inhouse audit, and two Bureau Veritas audits every year.

OUTCOME

Our SA 8000 procedures and our Amfori-BSCI Code of Conduct have prevented us from violating the human right conventions in Denmark and on factory level at our main suppliers. We comply with Danish legislation and collective agreements in Denmark. Bureau Veritas has successfully certified our company with SA 8000 in 2012 and every year since. To monitor our effort, and to measure our progress in the supply chain, we are auditing our suppliers according to an audit plan. Corrective action plans are issued accordingly.

• Claire Group A/S was certified with the ethic standard, SA 8000 in 2012 and every 3rd year since, with annual audits.

• In 2022 78 % of our employees are covered by a collective agreement

• In 2022 64 % of all employees have received SA 8000 training

• In 2022 57 % of employees on management level or in a position of trust were women

• In 2022 90 % of our suppliers (BV) are audited with the result A, B or C in the Amfori-BSCI 2.0 system. The rest have been screened with the purpose to prepare for auditing or have an expired audit circle.

LABOUR PRINCIPLESPEOPLE

Principle 3: Business should uphold the freedom of association and the effective recognition of the right to collective bargaining

Principle 4: The elimination of all forms of forced and compulsory labour.

Principle 5: The effective abolition of child labour.

Principle 6: The elimination of discrimination in respect of employment and occupation.

COMMITMENT

We want to be one of the best companies in the fashion industry handling CSR-related issues. We believe fundamentally that our social responsibility effort should encompass not only our own activities in Denmark but also activities in our supply chain within our sphere of influence. We believe that freedom of association and the right to collective bargaining are fundamental rights, which should be upheld.

We take the OHS extremely seriously because we believe that working environment and job satisfaction goes hand in hand. We care about health and safety for every employee including the psychological work environment. We want to provide a creative working environment and believe that this requires safe employees and a working environment of a top standard level. We motivate our staff to educate further and make the best possible use of our resources.

We condemn child labour, dangerous work, unreasonably long working days or salaries below the current industrial rate in production countries. We take part in a worldwide effort to deal with the challenges of living wage.

ACTIVITIES

Employees in headquarters are organized in unions as we respect freedom of association and the right to collective bargaining. The company is covered by three collective agreements. Compensation and overtime payment meet the Danish minimum standard or the relevant collective agreement. We have a clear written policy on Occupational Health and Safety. We continually improve our working environment, according to Danish legislation and our SA 8000 standard and procedures. We have an OH&S organisation with representatives from the workers and the management group. Our OH&S-work is very well organized. We assess any labour related risk or accident at Claire Group A/S as well as any “close to” accidents. We have

conducted a well being survey. We have 6 weeks of vacation and paid sick leave. We have an employer-paid health insurance. All employees have access to paid education within their area of responsibility. We have employees on special terms e.g., trainees or people in work ability testing as often as we can.

We have established a whistle-blower system to handle any complaints. We have in-house awareness training of employees in OH&S including harassment and in SA 8000 issues every second year. Our values together with our inhouse SA 8000 procedures and our Amfori-BSCI membership ensure us against violation of basic labour standards in Denmark and in our supply chain.

Through our membership of Amfori-BSCI we have implemented policies and the Amfori-BSCI Code of Conduct in our supply chain. The Amfori-BSCI Code of Conduct set out minimum criteria for labour standards to all our suppliers aiming at SA 8000.

OUTCOME

We comply with Danish legislation and collective agreements and Bureau Veritas has successfully re-certified our company with SA 8000 every year since 2012. Our staff is extremely loyal and consequently, we have a lot of longterm employment relationships. Our absence in 2020 was 2,19 % cleaned from long-term illness and maternity leave.

We are auditing our suppliers according to an audit plan and we monitor that corrective action plans are completed whenever we or a supplier fail to comply with the Code of Conduct. There is no forced or compulsory labour in the company or at our supplier premises and all basic labour standards are observed and audited at our suppliers. Our SA 8000 procedures and our commitment to

Amfori-BSCI have prevented us from violating basic worker standards, national legislation, and collective agreements in Denmark.

• Our OH&S-work is well organised and works successfully according to the intentions of the Danish legislation.

• 64 % of our staff has received training in our CSR-programme and SA 8000 issues in 2022.

• In 2022 we have two employees on special terms equivalent to 33 hours per week(Flexjobs).

• 100 % of all employees have a private health insurance.

• 78 % of all employees are covered by a collective agreement.

• 18 % of all employees hold a first aid certificate and 16 % have firefighting skills.

• We have established a whistle-blower system.

• In 2022 90% (79 % 2021) of our suppliers (BV) are audited A, B or C in the Amfori-BSCI. The rest have an expired audit circle or have been screened and have started preparation for the auditing procedure. Due to COVID lockdown, 3 suppliers were challenged by expired audits in december 2022. All three back in green in spring 2023 and therefore included in 90% green suppliers.

Our work with supplier performance is an important anchor in our CSR-strategy. Today we are proud to announce, that 90 % of our garment (buying volume) comes from factories audited with A, B, or C in the BSCI-Amfori system.

SUPPLIER MAPPING

Green suppliers: A,B,C in Amfori-BSCI system = 90 %. White: The rest = 10 %.

90 % 10 %

“

Ulla Dam, Group CSR & Purchase Manager

ENVIRONMENTPLANET

Principle 7: Businesses should support a precautionary approach to environmental challenges.

Principle 8: Undertake initiatives to promote greater environmental responsibility.

Principle 9: Encourage the development and diffusion of environmentally friendly technologies.

COMMITMENT

We strive to minimize the footprint we set from producing garments and we are aware of our environmental responsibility. We have a policy on environment and transportation. We consider environmental awareness as a wide range of initiatives that includes running our headquarters in Ikast on a sustainable basis and reducing our CO2 emission from producing our products.

We care about chemicals in clothes, zippers, and buttons, and we observe the EU-REACH and Norwegian legislation as a minimum. We support environmentally friendly technologies and help to improve knowledge of environmentally friendly labels, OEKO-TEX 100, GOTS and FSC.

ACTIVITIES

Our waste management system forces us to recycle whenever it is possible, and we measure our in-house consumption of resources. We encourage our suppliers always to use an environmentally friendly method and to avoid all unnecessary use of chemicals. We have a restricted chemicals programme, which our suppliers must follow including tests made by Bureau Veritas. We have a collection of organic cotton styles for children, GOTS and a collection of styles made of bamboo fibres. We also increase the number of styles with OEKO-TEX 100 year after year.

CG has completed a feasibility study on the company’s CO2 impact and has, among other things, decided to initiate two major environmental initiatives with implementation in the first half of 2023:

1. Replacing lights in the warehouse with LED lights.

2. Installation of three 50 kw solar power plants at the company’s headquarters in order to become 100% self-sufficient with power.

OUTCOME

In 2022 our consumption of electricity has increased by 23% due to more tenants in the house. We are focused on reduction of our waste, and we recycle as much as possible. Our commercial waste has decreased by 33% in 2022 and back to normal after an extensive cleanup in 2020+2021. In 2022 our consumption of heat is on level with 2016 and decreased by 19% due to focus on lowering of temperature in Denmark in all working rooms.

Our transport by air was 13% in 2022 due to supplier difficulties because of COVID lockdown. In 2020 we became certified with FSC to make garment in FSC-certified viscose. We have tested 17 qualities in 2022 according to our testing programme and two tests failed.

• Water consumption in 2022 was back to level after abnormal figure in 2019 – due to water damage.

• We sail 87 % of our goods to Europe from our Far East suppliers. 13 % by air.

• 98 % of suppliers (BV) have signed our restricted chemicals programme.

• In 2021 Bureau Veritas tested 17 qualities according to our restricted chemicals programme with limit values in EU-Reach and Norwegian legislation. Two tests failed.

• In 2022, we had 312 styles with GOTS=22% of BV.

• In 2022 we had 574 styles with certifications = 58% of BV.

• In 2022, we had 0 styles with FSC, however we expect large figures in 2023 due to a child program in FSC viscose bamboo/wool.

ANTICORRUPTION –PROFIT

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

COMMITMENT

At Claire Group we are strongly against bribery, extortion, or any other form of facility payments. We want to run a profitable company and respect people and planet. We influence our business partners with our attitudes to bribery and corruption.

ACTIVITIES

We have a company policy about bribery and anti-corruption implemented in our staff handbook. In 2014 our policy was strengthened, and we issued an anti-corruption code to be followed. We do not pay illegitimate payments and no employee must either give or receive gifts above a value limit of 50 Euro.

Our employees are encouraged to express complaints, suspicions, or concerns anonymously to the company by using the whistle-blower. Bribery is a part of our in-house employer training in SA 8000 and environmental issues.

OUTCOME

Our anti-corruption policy and our transparent rules and procedures have prevented us from any cases of bribery, anti-corruption etc. in 2022. We comply with Danish laws and Bureau Veritas has successfully audited our company with SA 8000 - latest in December 2021.

• Since 2012 our anti-corruption policy has been a part of our staff handbook.

• In 2022 we had no cases regarding bribery or anti-corruption from the whistle-blower scheme.

• In 2022 90 % of our suppliers (BV) are audited A, B or C in Amfori-BSCI system.

“

Claire Group introduced us to CSR in 2010. We accepted the challenge and today we have a very profitable relationship.

Kumar, India

KEY PERFORMANCE INDICATORS AND GOALS

Key Performance Indicators

Human Rights

Policy System

YES Headquarters: SA 8000 management system + Three collective agreements

Suppliers:

Amfori-BSCI incl. audits

KPI 2022 Headquarters

Headquarters:

• SA 8000 new certification in Dec. 2022

• 64 % of all employees with SA-8000 training in 2022

• 57 % of management level or in a position of trust are women

• 78 % of employees covered by a collective agreement

Labour Standards

YES Headquarters : SA 8000 management system + Three collective agreements

Suppliers: Amfori-BSCI incl. audits

Headquarters :

• SA 8000 new certification in Dec. 2021

• 64 % of all employees with SA-8000 training in 2022

• 78 % of employees covered by a collective agreement

• 18 % of all employees with first aid certificate

• 16 % with firefighting certificate

• 3/4 man year employed on special terms met.

Environment

YES Headquarters: GOTS and FSC certifications. Clever Care Campaign.

Suppliers: Restricted chemicals programme incl. tests

• FSC certification in May 2020.

• Feasibility study regarding foot p print (GHG) performed

Anti-corruption

YES Headquarters : SA 8000 management system. Anti-corruption Codex. Whistle-blower.

Suppliers : Amfori-BSCI incl. audits

• No cases regarding Anti-corruption,

KPI 2022 Suppliers

Suppliers :

1. 93 % of BV with first audit

2. 90 % of BV are audited

A, B or C in Amfori-BSCI

3. The rest of the suppliers with screening

Goals 2023 Headquarters

Headquarters :

• 85 % of all employees with SA-8000 training in 2022-2023

• A balanced representation of men and women on management level

• 80 % of employees covered by a collective agreement

Goals 2023 Suppliers

Suppliers :

1. 90 % with first audit

2. 85 % of BV are audited

A, B or C in Amfori-BSCI

3. The rest of the suppliers with screening + self assessment

4. Supplier mapping Tier 1+2

5. Identify suppliers (BV) paying living rrrwage

Suppliers :

1. 93 % of BV with first audit

2. 90 % of BV are audited

A, B or C in Amfori-BSCI

3. The rest of the suppliers with screening

Headquarters :

• 85 % of all employees with SA-8000 training in 2022-2023

• Min. ½ man-year employed on special terms.

• 80 % of employees covered by a collective agreement.

• Min. 15 % with first aid certificate

• Min. 15 % with firefighting certificate

Suppliers :

1. 90 % with first audit

2. 85 % of BV are audited

A, B or C in Amfori-BSCI

3. The rest of the suppliers with screening + self assessment

4. Supplier mapping Tier 1+2

5. Identify suppliers (BV) paying living rrrwage

Suppliers :

1. 98 % of BV with signed chemicals programme

2. 17 qualities tested by BV

3. 312 GOTS styles = 22% BV

4. 0 FSC styles

5. 574 styles with certification =58% of BV

• Styles with certification = 60% of BV.

• Two recommendations from feasibility study to be implemented.

• Calculate carbon footprint from transportation.

Suppliers :

1. 93 % of BV with first audit

2. 90 % of BV are audited

A, B or C in Amfori-BSCI

3. The rest of the suppliers with screening

Headquarters :

• All cases solved

Suppliers :

1. 95 % of BV with signed chemical programme

2. Inspections by Bureau Veritas on readymade garment from core suppliers equivalent to minimum 15 qualities tests per year

Suppliers :

1. 90 % with first audit.

2. 85 % of BV are audited

A, B or C in Amfori-BSCI.

3. The rest of the suppliers with screening + self assessment

4. Supplier mapping Tier 1+2

5. Identify suppliers (BV) paying living rrrwage

Bureau Veritas Certification Holding SAS

SA8000 MANAGEMENT SYSTEM CERTIFICATION CERTIFICATE

Certificate Number: IT312048

This is to certify that

Rev: 1

CLAIRE GROUP A/S

Marsvej 6-10 - 7430 IKAST (Denmark) - -

Has been found to confirm with an appropriate and effective management system that meets the requirements of Social Accountability Management System Standard

SA 8000:2014

Scope of certification

The scope of certification described by this certificate relates to the empowerment and protection of all personnel who provide products or services for that organisa tion at the above address, including personnel employed by the organisation itself for the following activities:

International fashion house with Danish design, development, innovation, purchase, logistic center, marketing and sale to retail customers

Date of initial certification:

25-July-2012

21-December-2024

Place and Date:

Italy, 22-December-2021

For and On Behalf Of Bureau Veritas Certification Holding SAS

claimer – Signature is not mandatory as it is Electronically generated certificate

Philippe Jeanmart 209843

President and Managing Director

Note: Lack of fulfilment of the conditions specified in the appropriate Certification Agreement may render this Certificate invalid

Social Accountability International and other stakeholders in the SA8000 process only recognize SA8000 certificates issued by qualified CBs granted accreditation by SAAS and do not recognize the validity of SA8000 certificates issued by unaccredited organizations or organizations accredited by any entity other than SAAS ” Additionally all SA8000 certificate shall contain the address of the SAAS website (www saasaccreditation org/certification) where stakeholders can confirm the validity of an accredited SA8000 certificate

Publication

We intend to make this COP-report available to our stakeholders. A summary of our social performance for 2022 can be found on page 36+37.

This COP-report will be available at the Global Compact homepage on www.clairewoman.com and www.hustandclaire.com.

This COP-report is also available to all employees, board members and visitors in our house.

Further information available on clairewoman.dk & hustandclaire.com

Claire Group A/S

Marsvej 6-10, 7430 Ikast

+45 97 15 31 22

claire@claire.dk